Balancing Financial security and Bitcoin Accumulation

[liasbaa]

My purchase method is DCA method and one-time investment. I have estimated that my average purchase price may be 80k-90k dollars. If I buy 0.5 Bitcoin, then I need 40000 dollars. If I buy 30 dollars every week, 40000÷30= 1,333.333 weeks will be needed. 1,333.333÷52=25.641 years. It will take about 26 years to achieve my goal, but I will not take so much time. I will try to achieve my goal as soon as possible. Because sometimes I get money from my businesses. I will invest more at that time and try to achieve my portfolio target quickly.

Bitcoin market is very unpredictable, if the average purchase price you have calculated is not as per your expectation then you may get disappointed so it would be better for you to continue buying continuously without having such expectations on the market. If the price of Bitcoin reaches the highest price again then it will take a lot more time for your portfolio so do not plan this and continue buying continuously until you reach the goal of building your portfolio. I do not know if you have started buying yet but if you have not started buying then it would be better not to worry about your average purchase price.

If you focus more on market you will easily get discouraged. Just play your part by accumulating and holding despite the market conditions, all that matter is that you are building something that will turn out profitable in long run , though it is not guarantee but historical data has proven that bitcoin tend to go up as time goes despite all the up and down movement .

The really I kept saying there’s no guarantee is because we can’t actually tell the future, the only thing that doesn’t change is changes . So there will always be changes as time goes, either positive or negative changes .

As an investor you’re not meant to focus on the market, instead you should focus more on buying and holding bitcoin, and having a discretionary income as well, I have seen a scenario where people who have difficulties finding their way and feet in buying and holding bitcoin, most times it’s been a very terrible situation and experience, because they will have to panic because of their money involved, but if you’re and old investor it would be better to know that you have to keep buying and accumulating bitcoin on a consistent basis and a regular basis.

You should also focus on the market price situation while investing in Bitcoin. Don't let Bitcoin accumulating become a boring affair as the market will go up and down and discretionary income is required to stay afloat with every price trend. It is also important to have a income stream and a proper implementation process of discretionary income fund in order to invest in Bitcoin. You will find it problematic to do DCA regularly if your income is not consistent or you do not have emergency funds available.

Emergency funds are of utmost importance to maintain the necessary cash flow and security of Bitcoin holdings to maintain long term dominance in investing. The sudden need for invested capital is responsible for creating panic in investing. From that point on, you need an emergency fund and cash flow to keep yourself in a safe investment position.

[Finebone]

You should also focus on the market price situation while investing in Bitcoin. Don't let Bitcoin accumulating become a boring affair as the market will go up and down and discretionary income is required to stay afloat with every price trend.

A bitcoin investor that have the intention of holding for a very long time doesn't need to focus on market price situation as you proclaim because he is thinking long term, and this current price that you think that is too expensive now may look like a serious dip in few years time from now, so why trouble yourself with what the market is doing now before thinking of buying?

It is also important to have a income stream and a proper implementation process of discretionary income fund in order to invest in Bitcoin. You will find it problematic to do DCA regularly if your income is not consistent or you do not have emergency funds available.

I agree with you that having a source of discretionary income is important, but what is more important is a discretionary income, because without it, you can't invest in bitcoin consistently.

Emergency funds are of utmost importance to maintain the necessary cash flow and security of Bitcoin holdings to maintain long term dominance in investing.

You don't have to be complicating things or be making confusing statement. Am emergency funds is only responsible to protect your Bitcoin investment, just in case of any real life emergencies that threatens your Bitcoin holdings, not what you use to invest consistently or to maintain cash flow as you proclaim.

[Frankolala]

You should also focus on the market price situation while investing in Bitcoin. Don't let Bitcoin accumulating become a boring affair as the market will go up and down and discretionary income is required to stay afloat with every price trend.

why will you be focusing on the market price when you're using DCA strategy to buy bitcoin irrespective of the current price of bitcoin at that moment. It's useless to  focus on the market price because it can distract you and make you not accumulate bitcoin if your instincts says the price might dip lower.

A brand new investor should focus on how he will keep his DCA ongoingly overtime why he also focus on improving his income in order to have extra funds to add to his discretionary income and invest aggressively after he has set up his emergency funds and other backup funds as he's investing.

 It is also important to have a income stream and a proper implementation process of discretionary income fund in order to invest in Bitcoin. You will find it problematic to do DCA regularly if your income is not consistent or you do not have emergency funds available.

You are not to set up an emergency funds before starting your Bitcoin investment. You are not to use your emergency funds to invest in bitcoin but your discretionary income.

[SPIDERMAN008]

Thanks for the nice suggestion. I didn't just focus on profit, I wanted to say how much profit can be. I have decided to buy 0.5 Bitcoin and buying from one year ago. My purchase method is DCA method and one-time investment. I have estimated that my average purchase price may be 80k-90k dollars. If I buy 0.5 Bitcoin, then I need 40000 dollars. If I buy 30 dollars every week, 40000÷30= 1,333.333 weeks will be needed. 1,333.333÷52=25.641 years. It will take about 26 years to achieve my goal, but I will not take so much time. I will try to achieve my goal as soon as possible. Because sometimes I get money from my businesses. I will invest more at that time and try to achieve my portfolio target quickly.

You tried to calculate. That's good. But I think you're still looking at the issue a bit too much from the target quantity and profit angle. Not from the investment process angle.

Setting a 0.5 BTC target is not bad. But such a target leads many newbies in the wrong direction. Because they make quantity a goal. The real question lies elsewhere. How strong your cash flow? How much discretionary income you reliably allocate .How more year can you continue buying BTC without panicking.

You showed that it can take about 26 years to reach 0.5 BTC with just $30 weekly buy. The lesson from this should be that 0.5 BTC is not impossible. Rather, if the weekly amount is small, the growth of Bitcoin holdings will be slow. This is normal. So the issue is not 0.5 BTC. The issue is the accumulation rate.

If extra money comes from business occasionally, then a better approach would be to not invest that extra money with random excitement. Deploy it in a planned way. Keep regular DCA on. If cash flow is strong, increase the buy amount. If extra funds come, make a staged lump sum instead of waiting for DIP.

But don't be overly aggressive. Don't put money in investment form the emergency fund. Don't put money form necessary expense. Or you may have to force sell later. And forced sell ruins many people's investment plans.

There is no need to worry too much about whether the average price BTC will be 80k to 90k or not. Because the price of BTC may increase or decrease after a few years and even now its happening so  it is completely unpredictable. Especially if you are still in the accumulation stage. In the early years, more important than the average cost is whether you can make buying habit. you should build a backup fund. you should also build psychological discipline.

If you really want to achieve your goal quickly, Make a clear framework for yourself. What percent of your income will go to BTC. What is the weekly base amount. What percentage of lump sum will you make if extra money comes from business. And how many months of expenses will the reserve fund cover. Then you will understand whether you are actually investing or just getting excited by seeing a big BTC number.

0.5 BTC may happen someday. It may also to be  not.  Increase the DCA amount step by step. And do not destroy the system. Then getting closer to the target will be more realistic. Do not stand on random hope. Because if the price of BTC increases with time, then you will get less BTC with same amount . What the price of BTC will be after 5 or 10 years is uncertain, where as if you buy BTC after calculating for 26 years, it will be bad feeling for you as you do not reach the target later. Because the price of Bitcoin is always volatile .

[ASloveapg]

My purchase method is DCA method and one-time investment. I have estimated that my average purchase price may be 80k-90k dollars. If I buy 0.5 Bitcoin, then I need 40000 dollars. If I buy 30 dollars every week, 40000÷30= 1,333.333 weeks will be needed. 1,333.333÷52=25.641 years. It will take about 26 years to achieve my goal, but I will not take so much time. I will try to achieve my goal as soon as possible. Because sometimes I get money from my businesses. I will invest more at that time and try to achieve my portfolio target quickly.

Bitcoin market is very unpredictable, if the average purchase price you have calculated is not as per your expectation then you may get disappointed so it would be better for you to continue buying continuously without having such expectations on the market. If the price of Bitcoin reaches the highest price again then it will take a lot more time for your portfolio so do not plan this and continue buying continuously until you reach the goal of building your portfolio. I do not know if you have started buying yet but if you have not started buying then it would be better not to worry about your average purchase price.

If you focus more on market you will easily get discouraged. Just play your part by accumulating and holding despite the market conditions, all that matter is that you are building something that will turn out profitable in long run , though it is not guarantee but historical data has proven that bitcoin tend to go up as time goes despite all the up and down movement .

The really I kept saying there’s no guarantee is because we can’t actually tell the future, the only thing that doesn’t change is changes . So there will always be changes as time goes, either positive or negative changes .

As an investor you’re not meant to focus on the market, instead you should focus more on buying and holding bitcoin, and having a discretionary income as well, I have seen a scenario where people who have difficulties finding their way and feet in buying and holding bitcoin, most times it’s been a very terrible situation and experience, because they will have to panic because of their money involved, but if you’re and old investor it would be better to know that you have to keep buying and accumulating bitcoin on a consistent basis and a regular basis.

Now as a consistent investor, you should not worry too much about the market fluctuations, because this is what leads most people to make the wrong decisions in the end. That is why it is necessary to create a mindset of buying and holding Bitcoin consistently without worrying about the fluctuations and without looking at the market, then through this our investment will not be affected by the volatility in any way, you should understand that Bitcoin is not a way to get rich quick, rather it is a long-term asset, so you have to hold it for the long term if you want to achieve something good.

[POPOLUV]

So we have to invest such an amount that we don't have to face any problems even if we lose it. But I think belief is very important, for example, it is our belief that the price of Bitcoin will create the highest ATH after each halving and if we continue to invest with that belief, we will get a lot of profit. Now the price of Bitcoin is relatively low, to exceed last year's ATH, it will have to be almost double the current price. So if we can invest now, if the next Bitcoin halving creates the highest ATH after that, we can make about two to three times the profit.

As a newbie your focus shouldn't be on profits rather your focus should be reaching your accumulation target. If you focus on profit all the time and given the way you are emphasising profits,you might tamper with your portfolio when bitcoin reaches ATH which isn't right approach to invest in bitcoin.  My advice for you never to focus on profits but rather focus on reaching your accumulation target first through ongoing, consistent, persistent and aggressve accumulation.

Imo, the best strategy is a combination of faith, patience, and discipline. You can be positive about the market, but at the same time follow a specific plan and gradually build your portfolio. This way, you will be able to capture big opportunities, as well as control the risks. Chasing profits is not bad, but it should not disrupt the process of consistently increasing savings. Investing regularly and patiently using the DCA strategy gives good results in the long run and reduces the risk of making emotional decisions. It is one of the most tested and successful strategies to date.

Do you mean that chasing profit as a new investor isn't bad? When an investor who is supposed to buying bitcoin is now thinking of chasing profit he will probably become a trader because all this target will be to sell when there is a slightest increase in the price of bitcoin, going into to market with the intention of chasing profit is even not good because we are not guarantee profit in bitcoin.
Bitcoin is an investment we should go in with our discretionary income knowing that nothing is guaranteed buy regularly and maintain a long time hodl what ever happen you take it the way you see it.

Mostly the impression of any investors focusing on profits making while he/she is still on the buying and accumulating processes is because of the wrong impression he/she has gotten from the investor that introduced them into Bitcoin,  so sometimes i don't blame some newbies that has grown in the crypto world with such mentality of focusing on profits making from his day one of investing and when he thinks his not longer a newbie, that he have arrived with what it takes to be an investors, is a totally lie because once a newbie has the wrong foundation on how Bitcoin works from the beginning stages, there is nothing know one can do about it until he advise himself that he is going in the wrong direction, so for me i always love to stress out the point of laying a good foundation from the beginning for all newbies so that when he is no more a newbie he will not depart from the right direction on Bitcoin actually works in other to more profitable than focusing on making profits within a short period of investment.

[Hardyrobust]

You should also focus on the market price situation while investing in Bitcoin. Don't let Bitcoin accumulating become a boring affair as the market will go up and down and discretionary income is required to stay afloat with every price trend. It is also important to have a income stream and a proper implementation process of discretionary income fund in order to invest in Bitcoin. You will find it problematic to do DCA regularly if your income is not consistent or you do not have emergency funds available.

Emergency funds are of utmost importance to maintain the necessary cash flow and security of Bitcoin holdings to maintain long term dominance in investing. The sudden need for invested capital is responsible for creating panic in investing. From that point on, you need an emergency fund and cash flow to keep yourself in a safe investment position.

There is no need to focus on market price conditions before buying bitcoin. It is only those that are into trading or that has the mindset of making quick profit that should be putting into consideration the market conditions before they can start accumulating bitcoin. The reason being that they would want to buy when they feel that it is safe for them to do so and also to sell within a short time. However, there is no need why long term investors in bitcoin should consider market prices conditions before buying bitcoin.

[Ishicryptic]

Honestly the benefits of DCA you listed said it all, talking about DCA and encouraging DCA is not in anyway being forceful on people newbies particularly who haven't used any method or those facing the pressure of other strategies. The listed benefits are not only for low income earners and listing the benefits of DCA to a newbies or a friend who you think or knows needs to change their strategy because of their situation is not in anyway forcing them, it's a way of helping by giving your suggestions leaving them to decide for themselves.

Investment should be done according to the ability of each person. Because if someone struggles to meet their basic needs, it will never be possible for them to find additional money for investment, so we can never force anyone. But we can explain to everyone how they can invest even with a very small amount of money, so that they can develop the mentality of investing even with a small amount of money and they can take advantage of Bitcoin. Because if a person has only $ 10 after meeting basic and necessary expenses, he can invest. However, even if $ 10 seems insignificant to someone, it can turn into a big amount in the long run. I think it may be better to buy with $ 10 than not to invest at all. We can explain to everyone how they can take advantage of their small amount of money so that they can make decisions comfortably on their own. However, forcing someone to make decisions leads to losses.

We shouldn't keep helpful information that can benefit others to ourselves and if you can share the benefits of DCA strategy to a newbie that has shown genuine interest to start Bitcoin investment for a long time you shouldn't hesitate to share. They should know that before they start it is important to understand financial management so that they will know that they are supposed to take DCA money from their discretionary funds. There is no competition in DCA strategy, every investors should buy according to the amount that they can comfortably afford to loose so they will not be tempted to sell if they have emergency expenses or want to meet up with their basic needs expenses.

[Decimetre]

Chasing profits is not bad, but it should not disrupt the process of consistently increasing savings.

I feel the obsession you have with trading. Dude your a trader!!

As a beginner, it is normal to panic at times or to make series of predictions on bitcoin because everyone has a way of learning a new thing. The most important aim of this forum for me is to give the right teachings about bitcoin and also to guide you into the right path. If a person chooses the shortcut after every effort to get to the right track, what is he going to say? That he was not told? Absolute No. @Abaeze might also not be a trader but wishing he could be making those infinitesimal profits he thinks are passing him by. He would either get it right or someday, get the f*ck out of bitcoin after loosing big.

Chasing profit always work against ongoing accumulation. The two of them are opposites and cannot be in alignment, so quit aligning what you shouldn't be doing. Investors are lots that ongoingly buys bitcoin for a cycle and more so they can build their stash, they don't care about the short little profits that volatility bring in.  When person start to be chasing quick money they are deceiving themselves to think they are investing.

Traders are the ones that are obsessed with profits and this obsession is what makes them to be making poor choices that can blow up the little Bitcoin they managed to gather.

The negative energy that bitcoin is facing is the review of traders. When a beginner tries to learn from a trader, he teaches him based on his experience which in most cases are not juicy in the ears of beginners upon hearing things like Invest what you can afford to loss. When a beginner starts trading, he is bound to have the wrong view about bitcoin because he may not do it long time and he will see that it's all loss. When another beginner asks a trader, he will say things that may scare the person away. You have to learn from a real investor as a beginner before you will be able to do the right decision.

[Finebone]

The negative energy that bitcoin is facing is the review of traders. When a beginner tries to learn from a trader, he teaches him based on his experience which in most cases are not juicy in the ears of beginners upon hearing things like Invest what you can afford to loss. When a beginner starts trading, he is bound to have the wrong view about bitcoin because he may not do it long time and he will see that it's all loss. When another beginner asks a trader, he will say things that may scare the person away. You have to learn from a real investor as a beginner before you will be able to do the right decision.

The truth is that any new Bitcoin investors that comes into the space by learning how to go about his bitcoin investment from a trader will always have the mindset of buying and selling once his investment appreciate, which I think is wrong. So it's very important that a new bitcoin investor learn from the right set of investor that is only preaching long term, because people can only give out what they have, so a trader will likely gives out the idea of buying and later selling it once it appreciate in value.
So I agree with your sentiment that who taught you how to invest in bitcoin plays an important role on how you are going to approach your Bitcoin investment, so proper orientation is very important, especially as a beginner.

[Crakryptvest]

There is no need to focus on market price conditions before buying bitcoin. It is only those that are into trading or that has the mindset of making quick profit that should be putting into consideration the market conditions before they can start accumulating bitcoin. The reason being that they would want to buy when they feel that it is safe for them to do so and also to sell within a short time. However, there is no need why long term investors in bitcoin should consider market prices conditions before buying bitcoin.

This is the very part I was much interested as I come into the system, with the help of most of you here and JayJuanGee I was able to know that it is of no important to put energy that would've been use to start acumulating my Bitcoin by doing my DCA with my discreationary income in doing something that will not be helpful to me instead it will push me off lane Bitcoin investment, with what I know now Bitcoin is not for quick money since that's an established fact, why will anyone continue to do something that is not recognized as Bitcoin investment approach.

[liasbaa]

You should also focus on the market price situation while investing in Bitcoin. Don't let Bitcoin accumulating become a boring affair as the market will go up and down and discretionary income is required to stay afloat with every price trend.

A bitcoin investor that have the intention of holding for a very long time doesn't need to focus on market price situation as you proclaim because he is thinking long term, and this current price that you think that is too expensive now may look like a serious dip in few years time from now, so why trouble yourself with what the market is doing now before thinking of buying?

You will accumulate wealth (Bitcoin) year after year and build a huge holding that you dream of, but you will do it blindly without any analysis. If you have such a psychological inclination, it may be an excuse not to invest for the long term. It is not right that you have to know everything about Bitcoin before entering Bitcoin investment. Initially, enter the investment with a little knowledge and gradually increase the amount of Bitcoin accumulation. At least know the basic things like price history, why Bitcoin price is likely to increase in the future and why Bitcoin has become a store of value in a short time and be engaged in investment with a long term strategy.

[Frankolala]

They should know that before they start it is important to understand financial management so that they will know that they are supposed to take DCA money from their discretionary funds.

Financial management is not a most for you to know before you get started with your bitcoin investment. What is important is for you to figure out if you have a discretionary income or not. If you have a discretionary income and the basic knowledge of bitcoin, you are good to start your bitcoin investment as a brand new investor. As you are investing, you should study and understand about your cash inflow in order for you to know how to manage it properly.

As you are investing consistently, you can start to put into practice financial management because if you don't assign the right funds to the appropriate use, you will make mistakes that will teach you a good lesson that might affect your bitcoin portfolio growth which will make you learn more on financial management because you don't want the same mistakes to occur again.